Long Blockchain, formerly known as Long Island Iced Tea, is getting out of the tea business and into blockchain.
The company announced in an SEC filing that it had reached an agreement to sell its ready-to-drink tea business to ECC Ventures 2 Corp for a combination of cash and shares. As part of the transaction, ECC Ventures 2 Corp is seeking to raise $2 million.
Amid the 2017 crypto bull run, Long Island Iced Tea rebranded as Long Blockchain. This move sent the company's shares skyrocketing to as much as 289%. At the time of rebranding, Long Blockchain said it planned to invest and partner with companies in the blockchain ecosystem. Subsequently, the firm received a subpoena from the SEC and got delisted from Nasdaq after it failed to maintain the stock exchange's market capitalization requirements.